WESTERN UNION CO (WU) Stock Fundamental Analysis
USA - NYSE:WU - US9598021098 - Common Stock
8.4 USD
-0.09 (-1.06%)
8.4394 USD
+0.04 (+0.47%)
We assign a fundamental rating of 6 out of 10 to WU. WU was compared to 101 industry peers in the Financial Services industry. While WU has a great profitability rating, there are some minor concerns on its financial health. WU has a bad growth rate and is valued cheaply. Finally WU also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
WU had positive earnings in the past year.
WU had a positive operating cash flow in the past year.
Each year in the past 5 years WU has been profitable.
In the past 5 years WU always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WU (11.22%) is better than 93.07% of its industry peers.
WU has a better Return On Equity (101.41%) than 99.01% of its industry peers.
WU has a Return On Invested Capital of 8.13%. This is in the better half of the industry: WU outperforms 77.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WU is above the industry average of 7.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 101.41% | ||
| ROIC | 8.13% |
ROA(3y)9.84%
ROA(5y)9.3%
ROE(3y)139.23%
ROE(5y)208.46%
ROIC(3y)9.8%
ROIC(5y)10.63%
1.3 Margins
Looking at the Profit Margin, with a value of 21.84%, WU is in the better half of the industry, outperforming 78.22% of the companies in the same industry.
WU's Profit Margin has improved in the last couple of years.
WU's Operating Margin of 17.81% is fine compared to the rest of the industry. WU outperforms 64.36% of its industry peers.
WU's Operating Margin has improved in the last couple of years.
WU has a Gross Margin of 37.41%. This is comparable to the rest of the industry: WU outperforms 51.49% of its industry peers.
WU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.81% | ||
| PM (TTM) | 21.84% | ||
| GM | 37.41% |
OM growth 3Y-6.29%
OM growth 5Y3.95%
PM growth 3Y11.78%
PM growth 5Y2.1%
GM growth 3Y-3.75%
GM growth 5Y-1.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WU is still creating some value.
The number of shares outstanding for WU has been reduced compared to 1 year ago.
The number of shares outstanding for WU has been reduced compared to 5 years ago.
The debt/assets ratio for WU is higher compared to a year ago.
2.2 Solvency
WU has an Altman-Z score of 1.09. This is a bad value and indicates that WU is not financially healthy and even has some risk of bankruptcy.
WU has a Altman-Z score of 1.09. This is in the better half of the industry: WU outperforms 61.39% of its industry peers.
The Debt to FCF ratio of WU is 7.14, which is on the high side as it means it would take WU, 7.14 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.14, WU perfoms like the industry average, outperforming 58.42% of the companies in the same industry.
WU has a Debt/Equity ratio of 3.11. This is a high value indicating a heavy dependency on external financing.
WU's Debt to Equity ratio of 3.11 is on the low side compared to the rest of the industry. WU is outperformed by 75.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.11 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 1.09 |
ROIC/WACC1.1
WACC7.42%
2.3 Liquidity
WU has a Current Ratio of 1.47. This is a normal value and indicates that WU is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.47, WU is doing good in the industry, outperforming 67.33% of the companies in the same industry.
A Quick Ratio of 1.47 indicates that WU should not have too much problems paying its short term obligations.
The Quick ratio of WU (1.47) is better than 68.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The earnings per share for WU have decreased by 0.00% in the last year.
The Earnings Per Share has been growing slightly by 0.23% on average over the past years.
WU shows a decrease in Revenue. In the last year, the revenue decreased by -3.79%.
WU shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.47% yearly.
EPS 1Y (TTM)0%
EPS 3Y-7.2%
EPS 5Y0.23%
EPS Q2Q%-4.55%
Revenue 1Y (TTM)-3.79%
Revenue growth 3Y-6.02%
Revenue growth 5Y-4.47%
Sales Q2Q%-3.78%
3.2 Future
The Earnings Per Share is expected to grow by 1.94% on average over the next years.
Based on estimates for the next years, WU will show a small growth in Revenue. The Revenue will grow by 1.31% on average per year.
EPS Next Y0.58%
EPS Next 2Y2.21%
EPS Next 3Y3.68%
EPS Next 5Y1.94%
Revenue Next Year-1.91%
Revenue Next 2Y-0.57%
Revenue Next 3Y-0.08%
Revenue Next 5Y1.31%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.97, the valuation of WU can be described as very cheap.
Based on the Price/Earnings ratio, WU is valued cheaply inside the industry as 94.06% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.30. WU is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 4.59, the valuation of WU can be described as very cheap.
Based on the Price/Forward Earnings ratio, WU is valued cheaper than 93.07% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, WU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.97 | ||
| Fwd PE | 4.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WU is valued cheaper than 94.06% of the companies in the same industry.
86.14% of the companies in the same industry are more expensive than WU, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.04 | ||
| EV/EBITDA | 4.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WU does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of WU may justify a higher PE ratio.
PEG (NY)8.58
PEG (5Y)21.6
EPS Next 2Y2.21%
EPS Next 3Y3.68%
5. Dividend
5.1 Amount
WU has a Yearly Dividend Yield of 10.84%, which is a nice return.
WU's Dividend Yield is rather good when compared to the industry average which is at 4.94. WU pays more dividend than 96.04% of the companies in the same industry.
WU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.84% |
5.2 History
The dividend of WU has a limited annual growth rate of 3.31%.
WU has paid a dividend for at least 10 years, which is a reliable track record.
WU has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.31%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
WU pays out 35.52% of its income as dividend. This is a sustainable payout ratio.
WU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP35.52%
EPS Next 2Y2.21%
EPS Next 3Y3.68%
8.4
-0.09 (-1.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners101.92%
Inst Owner Change-4.61%
Ins Owners0.4%
Ins Owner Change2.94%
Market Cap2.71B
Analysts46.92
Price Target9.99 (18.93%)
Short Float %9.49%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 10.84% |
Yearly Dividend0.93
Dividend Growth(5Y)3.31%
DP35.52%
Div Incr Years0
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.61%
Min EPS beat(2)-7.76%
Max EPS beat(2)-1.46%
EPS beat(4)1
Avg EPS beat(4)-3.54%
Min EPS beat(4)-7.76%
Max EPS beat(4)2.03%
EPS beat(8)3
Avg EPS beat(8)-0.77%
EPS beat(12)5
Avg EPS beat(12)2.53%
EPS beat(16)9
Avg EPS beat(16)5.74%
Revenue beat(2)0
Avg Revenue beat(2)-4.25%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)-3.95%
Revenue beat(4)1
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)0.21%
Revenue beat(8)3
Avg Revenue beat(8)-1.25%
Revenue beat(12)5
Avg Revenue beat(12)-0.39%
Revenue beat(16)5
Avg Revenue beat(16)-1.18%
PT rev (1m)1.55%
PT rev (3m)-10.79%
EPS NQ rev (1m)-0.94%
EPS NQ rev (3m)-5.28%
EPS NY rev (1m)-3.53%
EPS NY rev (3m)-3.79%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.97 | ||
| Fwd PE | 4.59 | ||
| P/S | 0.66 | ||
| P/FCF | 7.04 | ||
| P/OCF | 5.49 | ||
| P/B | 3.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.69 |
EPS(TTM)1.69
EY20.12%
EPS(NY)1.83
Fwd EY21.76%
FCF(TTM)1.19
FCFY14.2%
OCF(TTM)1.53
OCFY18.21%
SpS12.71
BVpS2.74
TBVpS-4.75
PEG (NY)8.58
PEG (5Y)21.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.22% | ||
| ROE | 101.41% | ||
| ROCE | 10.03% | ||
| ROIC | 8.13% | ||
| ROICexc | 9.4% | ||
| ROICexgc | N/A | ||
| OM | 17.81% | ||
| PM (TTM) | 21.84% | ||
| GM | 37.41% | ||
| FCFM | 9.39% |
ROA(3y)9.84%
ROA(5y)9.3%
ROE(3y)139.23%
ROE(5y)208.46%
ROIC(3y)9.8%
ROIC(5y)10.63%
ROICexc(3y)12.09%
ROICexc(5y)13.01%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)12.02%
ROCE(5y)13.02%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-11.63%
ROICexc growth 5Y-2.69%
OM growth 3Y-6.29%
OM growth 5Y3.95%
PM growth 3Y11.78%
PM growth 5Y2.1%
GM growth 3Y-3.75%
GM growth 5Y-1.35%
F-Score5
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.11 | ||
| Debt/FCF | 7.14 | ||
| Debt/EBITDA | 3.06 | ||
| Cap/Depr | 64.51% | ||
| Cap/Sales | 2.65% | ||
| Interest Coverage | 5.8 | ||
| Cash Conversion | 54.91% | ||
| Profit Quality | 43% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 1.09 |
F-Score5
WACC7.42%
ROIC/WACC1.1
Cap/Depr(3y)67.05%
Cap/Depr(5y)58.3%
Cap/Sales(3y)2.81%
Cap/Sales(5y)2.47%
Profit Quality(3y)62.33%
Profit Quality(5y)81.9%
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y-7.2%
EPS 5Y0.23%
EPS Q2Q%-4.55%
EPS Next Y0.58%
EPS Next 2Y2.21%
EPS Next 3Y3.68%
EPS Next 5Y1.94%
Revenue 1Y (TTM)-3.79%
Revenue growth 3Y-6.02%
Revenue growth 5Y-4.47%
Sales Q2Q%-3.78%
Revenue Next Year-1.91%
Revenue Next 2Y-0.57%
Revenue Next 3Y-0.08%
Revenue Next 5Y1.31%
EBIT growth 1Y-5.83%
EBIT growth 3Y-11.93%
EBIT growth 5Y-0.7%
EBIT Next Year25.87%
EBIT Next 3Y9.03%
EBIT Next 5Y3.92%
FCF growth 1Y-4.46%
FCF growth 3Y-32.58%
FCF growth 5Y-19.17%
OCF growth 1Y-8.31%
OCF growth 3Y-27.02%
OCF growth 5Y-14.98%